Our team at Morgan Creek Digital made an investment in BlockFi last year. The company has continued to grow at an impressive rate and is launching a new product today — the BlockFi Interest Account (BIA).
This new offering will allow anyone to deposit Bitcoin and Ether with BlockFi, while earning 6% annual interest. This is a big deal for a few reasons:
HIGH SECURITY — BlockFi will hold customer’s crypto with Gemini, one of the leading custody providers in the space. Gemini recently announced digital asset insurance coverage and the completion of its SOC 2 Type 1 security compliance review of its exchange and custodian platform.
HIGH YIELD — The interest rate compounds monthly, so BlockFi ends up paying customers 6.2% APY, which is the highest in the industry. Additionally, if you deposit Bitcoin, you are paid your interest payments in Bitcoin. If you deposit Ether, you are paid in Ether.
BlockFi’s goal is to create products that help cryptocurrency investors do more with their assets. They originally started with low cost USD loans, before expanding to offer these interest earning accounts.
The BIA product has been in private testing for a few weeks, with more than $10 million already deposited by retail and institutional customers. My expectation is that the number of deposits, along with total amount deposited, will quickly grow month-over-month. Simply, it is hard to beat 6.2% annual percentage yield for a deposit account.
If you’re interested in learning more or want to test out the product, you can visit https://blockfi.com/crypto-interest-account/.
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